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Portuguese manager Ruben Amorim has landed his first role since parting ways with Manchester United, a move that will significantly reduce the financial burden on his former employers.

Amorim has been without a job since being dismissed as Manchester United’s head coach on January 5, 2026, a decision that also saw his five-member coaching staff depart from Old Trafford.

His sacking came 14 months into his tenure and was announced only hours after he publicly criticised the club’s hierarchy following a 1-1 draw against Leeds United.

The separation was expected to be costly for the Red Devils, with reports estimating that it might have cost the club close to £16 million in severance payments.

However, the total compensation package of £15.9 million was reportedly dependent on several conditions, including the 41-year-old securing another managerial position within a defined period.

With confirmation that Amorim has signed a two-year contract, including an option for a third, to take over as AC Milan’s new head coach, Manchester United’s compensation obligations will now be reduced as a result of his appointment by the Italian club.

Although the revised payout figure has not been disclosed, the fact that United will not have to pay the full amount represents positive financial news for the club ahead of what promises to be a busy summer transfer window.

Ruben Amorim's return to management comes at a time when Manchester United are actively strengthening their squad. Reports suggest that the club has agreed to a £35 million deal for Atalanta midfielder Ederson, while they are also pursuing a new left-back, a left-winger, and another central midfielder to reinforce Michael Carrick’s team for the upcoming season.

Among those linked with moves to Old Trafford are Lewis Hall and Bradley Barcola, while any potential transfer for West Ham midfielder Mateus Fernandes is expected to command a fee of £80 million unless the Hammers soften their negotiating stance.

Amorim’s appointment as Massimiliano Allegri’s successor at the San Siro will quickly bring him face to face with his former club. AC Milan and Manchester United are set to meet in a pre-season friendly on August 15 in Wroclaw, Poland, marking an early reunion for the Portuguese tactician.